Digilogic's first annual results: profit up 34%, but most of its IPO cash is idle
Revenue rose 7.5% to ₹77.4 cr, profit jumped 34%, but ₹5,133 lakh of the IPO proceeds remain unspent.
What's new
- Digilogic's first audited annual results show FY26 revenue of ₹77.4 cr, up from ₹72.1 cr, and net profit of ₹10.4 cr, up from ₹7.8 cr.
- Growth was back-loaded: H2 revenue was ₹59.25 cr versus ₹18.18 cr in H1.
- The board approved results with an unmodified audit opinion and disclosed ₹5,133 lakh of IPO proceeds remain unutilised.
Why this matters
The results confirm the business can grow profits faster than revenue, with net profit up 33.8% on 7.5% revenue growth. But for a company that listed just months ago, having the vast majority of its IPO cash sitting untouched is the primary concern. It casts doubt on the original timeline for the new facility.
What we're watching
- Progress on deploying the ₹5,133 lakh for the planned new facility.
- Whether the H2 revenue momentum carries into FY27.
- Any management commentary on the delay in using the IPO funds.
The full read
Digilogic's first annual results as a listed company show a business growing profits faster than its top line. Net profit climbed 33.8% to ₹10.4 crore on revenue of ₹77.4 crore, a 7.5% increase. The growth was overwhelmingly back-loaded. H2 revenue was ₹59.25 crore, or nearly 77% of the full year, after a slow first half of just ₹18.18 crore. The board approved the results with a clean audit opinion. The bigger issue for investors is the balance sheet. ₹5,133 lakh of the IPO proceeds remain unspent, earmarked for a new facility that has not materialised. For a company that listed in January, having most of its raised capital sitting idle overshadows an otherwise solid debut year.
Questions answered
- How did Digilogic perform in its first year as a listed company?
- Revenue grew 7.5% to ₹77.4 crore and net profit rose 33.8% to ₹10.4 crore. The growth was heavily concentrated in the second half, which contributed ₹59.25 crore of revenue versus ₹18.18 crore in the first half.
- What is the status of the IPO proceeds?
- ₹5,133 lakh of the money raised in the January IPO remains unutilised. The funds were designated for a new facility, which has not yet come to fruition.
- What does the unmodified audit opinion signify?
- The board approved the results with an unmodified audit opinion, meaning the auditors issued a clean report with no material qualifications or concerns regarding the financial statements.
- Why was the revenue so skewed to the second half?
- H1 revenue was ₹18.18 crore, while H2 revenue was ₹59.25 crore. The filing does not provide a reason for this sharp back-loading of sales.